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Where should today's gold focus be? On the long-term cycle or the support and resistance at 4256 and 4242?
Also, I believe 4218 is a good entry point. The resistance above has shifted from 4350 to 4342 and 4320.
Today’s non-farm payroll data has a high potential for being manipulated, but the probability of positive data is high. Therefore, there is a rhythm of pushing gold higher, but it will likely rally up and then fall back.
The market is skeptical about the data, but since a low point was reached during the European session today, there will be opportunities to buy in.
The moments before and after the data release are ideal for exiting positions.
On Thursday, with CPI data, gold might see some upward movement. No worries—wait for the high point to short. Why?
Because Friday is the Bank of Japan rate hike and Quadruple Witching Day, with a large number of options expiring.
Initially, a rate hike by the Bank of Japan is bullish for gold, but once options expire, if the bets are on the dollar or U.S. Treasury yields, gold will fall!
Conversely, betting on gold will lead to explosive upward movement.
Today, focus on the short-term support at 4278–4280. Break below 4256/4242 for a short-term entry, then 4218 as a standard entry point.
If it breaks below 4200, a continued decline is likely, so just watch and wait.
A break above 4280, with a rebound to 4303, becomes resistance.
Yesterday, 4303 was a buy point; today, it’s resistance. But this is aggressive; for reference only.
Breaking below 4298 could lead to further decline, which is also reasonable.
It depends on which side you want to trade.